Sunday, 16 May 2021 11:57 GMT

Bank of Canada to maintain main interest rate at 0.25 percent

( MENAFN )The Bank of Canada declared to maintain its main interest rate at 0.25 percent on Wednesday, April 21.

The Canadian central bank's main rate stays at 0.25 percent where it has held stable for more than a year after the coronavirus outburst.

Though, the bank shifted its forward leadership for a rate hike to the second half of next year from 2023 and increased its forecast for financial expansion this year to 6.5 percent, it increased from 4 percent it forecast in January, and particularly higher than the 5.8 percent GDP expansion projection the federal government used in its financial plan on Monday.

The review is driven in large part by stronger-than-anticipated expansion in the first quarter of this year. GDP is anticipated to have increased by approximately 7 percent in the first three months of the year in spite of the continuing coronavirus pandemic and heightened lock-down measures -- a dramatic 9.5 percentage points higher than the bank prediction in January.

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